Why Buy Renters Insurance

While many people with homes buy homeowner’s insurance, not as many renters buy renter’s insurance. Which is a shame because it is one of the best values in the insurance world. Why don’t more people take advantage of this?

Some may mistakenly assume that if their landlord or the owner of their building has insurance, the landlord or the owner’s insurance will cover their belongings in the event of a loss. Others assume that because their belongs aren’t terribly valuable, renter’s insurance would not be of much benefit to them as they can replace their things fairly cheaply.

But imagine the worst – there is a fire in your apartment building. The fire was two doors down, but the smoke and water damage has destroyed or damaged everything you own – your clothing, furniture, curtains, television, computer…even the food in your cupboards. Not only that, but the fire department has closed off your floor and you have no place to live until the landlord cleans up the building. The wet and smoky things in your apartment that can be salvaged need to be cleaned or, if beyond repair, carted away. More than likely, your landlord is not responsible for any of these costs. And if they are liable, you will have to wait to settle with their insurance company, perhaps even sue to get back the money you have spent.

Enter renter’s insurance. In addition to providing coverage for all of your ‘contents’ – everything from your socks to your CD collection, your microwave to your favorite tennis shoes – most polices provide for reimbursement for living expenses if your home is not habitable, as well as cleaning and repair costs.

But the worst doesn’t have to happen for a renter’s policy to provide you with value. Comprehensive or ‘All-Perils’ coverage can provide coverage for losses arising from burglary, vandalism, storm damage, etc. You may also obtain or have included liability coverage to protect yourself in the event someone is injured in your home and sues you.

People often believe that if their belongings are in their vehicle and they have an accident, their car insurance will cover their belongings. This is not true. Perhaps you are on vacation your car is stolen with all of your suitcases, clothes, shoes, and CD’s in the car. Your car insurance will not reimburse you for all those lost items – but your renter’s policy will.

Perhaps you do not own the structure you live in, but it still is your home and your castle. All those things inside it that are yours, your Granny’s cookie jar, the curtains you made yourself, they are all the things that make it your home. Renter’s insurance provides you with peace of mind knowing that all those things that make your castle uniquely yours are protected.